H.R. 9898

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9898 Introduced in House (IH)]

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118th CONGRESS
2d Session
H. R. 9898

To amend the Department of Energy Organization Act to secure midstream 
processing of critical materials, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

October 1, 2024

Mr. Guthrie (for himself, Mr. Fulcher, Mr. Newhouse, Mr. Bilirakis, Mr. 
Bucshon, Mr. Pfluger, Mr. Weber of Texas, Mr. Wittman, Mr. Moore of 
Utah, Mr. Bacon, and Mrs. Miller-Meeks) introduced the following bill; 
which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

A BILL

To amend the Department of Energy Organization Act to secure midstream 
processing of critical materials, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Securing America's Midstream 
Critical Materials Processing of 2024''.

SEC. 2. FINDINGS.

The Congress finds that--
(1) midstream separation, processing, refining, alloying, 
concentration, smelting, and beneficiation of critical 
materials represent a linchpin in efforts to secure domestic 
supply chains and reduce our dependence on foreign adversaries;
(2) unreasonable environmental regulations covering 
midstream critical materials processors has deterred necessary 
investment and driven industry towards foreign countries;
(3) reshoring domestic industries and their supply chains 
improves economic prosperity for American communities, creates 
stable employment opportunities, and protects national security 
interests;
(4) our next generation economy and domestic manufacturing 
industry will significantly increase demand for critical 
material inputs;
(5) the lack of sufficient domestic midstream critical 
material processing capacity presents a vulnerability to our 
economic and national security;
(6) China and other geopolitical adversaries of the United 
States have dominated critical material processing markets, 
which represents a threat to America's next generation economy;
(7) China and other geopolitical adversaries of the United 
States purposefully exploit critical material processing 
markets through unfair trade practices, such as dumping and 
price manipulation, in an attempt to maintain their control and 
undermine competing investment opportunities;
(8) the United States needs to expand its technical 
workforce expertise and experience in critical material 
processing and address workforce challenges to bolster domestic 
opportunities supported by a domestic supply chain for critical 
materials;
(9) foreign investment from allied nations and Free Trade 
Agreement countries presents an opportunity to reshore domestic 
midstream critical material processing capacity;
(10) the challenges of navigating burdensome permitting 
processes act as a hindrance to further investment in midstream 
critical material processing capacity;
(11) midstream critical material processing facilities 
require access to reliable and affordable electricity and will 
require increased generation and transmission infrastructure to 
meet projected future demands; and
(12) the United States retains some of the highest 
environmental and labor standards compared to adversarial 
nations that dominate the midstream critical material 
processing industry, such as China.

SEC. 3. NATIONAL ROADMAP ON DOMESTIC OPPORTUNITIES FOR MIDSTREAM 
CRITICAL MATERIAL PROCESSING.

(a) In General.--In carrying out the requirements of the Department 
of Energy Organization Act (42 U.S.C. 7101 et seq.), the Secretary of 
Energy, in consultation with the Secretary of Commerce and the heads of 
other appropriate Federal agencies, representatives of the critical 
material processing industry, and members of academia covering critical 
materials processing industries, shall--
(1) analyze and report to Congress regarding the current 
state of midstream processing of critical materials; and
(2) identify those places where the United States-based 
supply chain for critical materials is insufficient to allow 
for the appropriate and necessary development of United States-
midstream processing of critical materials, including 
opportunities for foreign direct investment from allied nations 
and Free Trade Agreement countries.
(b) Membership.--The Secretary of Energy shall convene an 
interagency task force comprised of--
(1) the Secretary of Commerce;
(2) the Secretary of the Treasury;
(3) the Secretary of Defense;
(4) the Secretary of State;
(5) the Secretary of the Interior; and
(6) the Administrator of the Environmental Protection 
Agency.
(c) Report Timing.--Not later than 1 year after the enactment of 
this Act, the task force shall issue the report required under 
subsection (a).
(d) Report Contents.--The report required under subsection (a) 
shall include--
(1) whether there is an adequate supply of critical 
materials to meet current and projected domestic needs that be 
processed in the United States;
(2) the status of global midstream critical materials 
processing industry;
(3) the status of domestic midstream critical materials 
processing industry, including its ability to handle the supply 
described in paragraph (1);
(4) an analysis of how and why the United States domestic 
critical materials processing industry began and continues to 
outsource operations to other countries;
(5) a review of the existing regulatory and permitting 
apparatus covering midstream critical materials processing 
facilities, including requirements under the Clean Air Act (42 
U.S.C. 7401 et seq.), the Comprehensive Environmental Response, 
Liability, and Compensation Act of 1980 (42 U.S.C. 9601 et 
seq.), and the Solid Waste Disposal Act (42 U.S.C. 6901 et 
seq.), or other laws, and how regulatory compliance under these 
requirements influence potential investments into new 
facilities;
(6) the economic impact of critical materials processing to 
the overall United States economy and its welfare;
(7) barriers to investment into domestic critical materials 
processing, including--
(A) the workforce and educational needs of 
expanding critical materials processing;
(B) infrastructure requirements to build out 
critical materials processing; and
(C) permitting inefficiencies for domestic 
midstream critical materials processing, including 
compliance with the Clean Air Act (42 U.S.C. 7401 et 
seq.), the Comprehensive Environmental Response, 
Liability, and Compensation Act of 1980 (42 U.S.C. 9601 
et seq.), and the Solid Waste Disposal Act (42 U.S.C. 
6901 et seq.) and other relevant Federal laws;
(8) the cost-effectiveness, growth potential, and viability 
of secondary or alternative critical materials processing to 
help meet expected domestic demand for processed critical 
materials, including reprocessing or recycling of--
(A) coal or coal waste;
(B) mine tailings;
(C) post-consumer electronic waste devices;
(D) smelter and refinery slags and residuals; and
(E) materials or waste recovered from sites 
designated as Superfunds pursuant to the Comprehensive 
Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.);
(9) a review of the existing efforts by the Department of 
Energy's Office of Manufacturing and Energy, or other efforts 
within the membership of the interagency task force convened 
under subsection (b), to advancing secondary or alternative 
critical materials processing;
(10) how the expected trend in the demand for processed 
critical materials is affected by the role that midstream 
critical material processing in the United States plays in 
aiding domestic manufacturing;
(11) barriers to foreign direct investment from allied 
nations and Free Trade Agreement countries into the United 
States for critical material processing, including workforce 
challenges, infrastructure needs, permitting timeframes, and 
pricing transparency risks;
(12) an identification and measure of the control the 
Peoples' Republic of China and the Russian Federation have of 
processed critical materials for countries that are parties 
with the United States in a free trade agreement;
(13) the national security implications posed to the United 
States by continued control of midstream critical material 
processing industry by the Peoples' Republic of China or other 
geopolitical adversaries; and
(14) any anti-competitive practices by the Peoples' 
Republic of China and any other geopolitical adversaries of the 
United States, and other non-market state owned enterprises to 
control the midstream critical materials processing industry 
by--
(A) depressing domestic prices through dumping 
refined critical materials onto United States markets;
(B) manipulating critical material prices to 
discourage United States investment and undermine long-
term stability for United States markets;
(C) purposefully disrupting supply chains for 
United States industries;
(D) manipulation of greenfield investment into Free 
Trade Agreement countries; and
(E) establishment of commodity-specific trading 
platforms to further entrench the Peoples' Republic of 
China's market dominance.
(e) Advisory Panel.--
(1) In general.--The Secretary of Energy shall establish an 
advisory panel to provide input, technical analysis, and 
feedback for and on the report required under subsection (a).
(2) Membership.--The advisory panel shall include--
(A) 5 representatives from the domestic critical 
materials processing industry, including--
(i) a diversity of processed critical 
materials; and
(ii) participants in critical material re-
processing or recycling; and
(B) 5 individuals from academia that have a 
diversity of perspectives and relevant expertise in--
(i) in domestic critical materials 
processing industries; and
(ii) research into national security 
implications of the impact of the Peoples' 
Republic of China and other foreign 
adversaries' engaging in anti-competitive 
behaviors in the critical materials processing 
industry.
(3) Meetings.--The advisory panel shall meet not less than 
2 times before the task force issues the report required under 
subsection (a).

SEC. 4. GAO REPORT.

The Comptroller General of the United States shall submit to 
Congress a report regarding how current Federal policies and permitting 
processes inhibit investment in midstream critical materials 
processing, including--
(1) how Public Law 117-169 (commonly known as the 
``Inflation Reduction Act'') may have affected greenfield 
foreign-directed investments in free trade agreement countries 
from the Peoples' Republic of China;
(2) how regulations issued pursuant to the Clean Air Act 
(42 U.S.C. 7401 et seq.) and the Solid Waste Disposal Act (42 
U.S.C. 6901 et seq.) or other relevant laws inhibit new 
investments into midstream critical materials processing;
(3) the role of regulation and permitting, including that 
of litigation, in inhibiting and discouraging investment;
(4) a review of--
(A) the effectiveness of Federal policies in 
encouraging the utilization of secondary or alternative 
critical materials sources, including material re-use, 
recycling, and materials or waste recovered from sites 
identified on the National Priorities List as subject 
to the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
et seq.); and
(B) whether Federal investments allow for 
commercialization by private industry;
(5) a review of the policies of comparable allied nations 
that have midstream critical materials processing industries to 
site, permit, and regulate facilities;
(6) a review of the benefits to producers and consumers of 
materials used in United States manufacturing and finished 
goods, including--
(A) minerals included on the list published by the 
United States Geological Survey pursuant to section 
7002(c) of the Energy Act of 2020 (30 U.S.C. 1606(c));
(B) materials included on the list of critical 
materials published by the Department of Energy 
pursuant to section 7002(a) of the Energy Act of 2020 
(30 U.S.C. 1606(a)); and
(C) materials of interest designated as such by the 
Defense Logistics Agency; and
(7) a review of the role of all Federal agencies engaged in 
midstream critical materials processing and opportunities to 
improve interagency collaboration and create synergies to 
leverage individual expertise.

SEC. 5. DEFINITIONS.

(a) Definitions.--In this Act:
(1) Advisory panel.--The term ``advisory panel'' means the 
advisory panel established under section 3(e).
(2) Critical material.--The term ``critical material'' has 
the meaning given the term in section 7002(a)(2) of the Energy 
Act of 2020 (30 U.S.C. 1606(a)(2)).
(3) Critical material processing.--The term ``critical 
material processing'' means any process that transforms, 
refines, separates, alloys, concentrates, smelts, or 
beneficiates raw extracted critical materials into value added 
inputs.
(4) Task force.--The term ``task force'' means the 
interagency task force convened under section 3(b).
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